FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.00711

 Kijun-Sen- 1.00642

EURUSD  plummets sharply after upbeat US CPI data. The US inflation for Aug dropped to 8.3% YoY Compared to a forecast of 8.1%. Core CPI surged 0.6% over the month, to an annual rate of 6.3%.  The surge in US CPI has confirmed another 75 bpbs rate hike by Fed in the net meeting.

Markets eye US PPI data for further direction.

According to the CME Fed watch tool, the probability of a 100 bpbs rate hike in Sep rose to 35% from 0% a day ago.

US 10-year yield is trading higher for the past week and surged more than 35%.

 EURUSD hits a high of 0.98682 and is currently trading around 0.99983.

Technical:

On the higher side, near-term resistance is around 1.0200 and any convincing breach above will drag the pair to the next level of 1.0600/1.075/1.0100.

The pair's immediate support is at 0.9950, breaking below targets of 0.9890/0.9860.

Indicator (4-hour chart)

Directional movement index – Neutral

It is good to buy above 1.0200  with SL around 0.9960 for a TP of 1.0650. or

Sell below 0.9910 with SL around 0.9965 for TP of 0.9800.